Affordable Rent bids set to be published this week

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Housing providers are set to discover whether their bids to build affordable homes via the Government's new Affordable Rent framework have been successful this week, 24dash understands.

Under the new scheme, landlords will be able to offer new homes and a proportion of re-lets to tenants on fixed tenancies charging a rent of up to 80 per cent of local market rate.

The extra revenue raised from rents would then be invested in building new homes.

Ministers have dedicated around £2.2bn to the scheme over the next four years with providers having to set out their approach over the 2011-15 period, with some contract flexibility rather than fixed commitments.

For access to Homes and Communities Agency (HCA) cash, providers have been expected to outline the number of homes they can provide, with what tenure, with re-lets, and borrowing capacity also expected to be outlined.

The HCA is understood to have also considered disposals and shared ownership products as part of providers' offers where expected cash is put into new supply.

Building contractors are gearing themselves up for a "significant increase" in work once housing providers discover whether their bids have been successful.

According to The Housing Forum, a professional network representing housing providers and firms that make up their supply chains, many contractors have been reliant upon private sector work during the past few months as bids submitted by housing associations and other registered providers for the Affordable Rent framework were considered by the HCA.

The Forum says it is vital that providers and contractors get together soon and establish new partnerships, or renew existing ones.

Shelagh Grant, The Housing Forum’s chief executive, said: “We have seen a very tentative operating environment that has made things difficult for house builders and contractors,” she said.

She stressed the need for housing associations and other providers to get in touch with potential contractors and developers as soon as possible so that contractors can meet what, in some cases, may be extremely tight timescales.

A successful house building industry is vital to local economies and growth, added Shelagh Grant. “In general, house building is sourced locally and generates wealth and employment in local communities,” she said.

“Hopefully, speedy settlement of the new framework for affordable house building will lead to resumption of work as quickly as possible.”